The data in the table refers to a company’s production of a product. Between 2020 and 2021 there was a decrease in the unit costs of the product. Capacity Actual output Statement 1: ‘Between 2020 and 2021, economies of scale might have led to lower unit costs.’ Statement 2: ‘Between 2020 and 2021, higher capacity utilisation might have led to lower unit costs.’ Read statements 1 and 2 and select the correct option from the following:

Source: June 2024 · 10 · 2024